Microsoft joins AI cost-cutting trend by relying more on its own models

In Brief

12:58 PM PDT · July 7, 2026

As AI costs continue to rise, companies are looking for ways to cut back. The most recent example is Microsoft, which has reportedly begun to deploy a cost-savings strategy by relying less on software from OpenAI and Anthropic and instead deploying its own in-house models.

Indeed, when it comes to two of its most widely used programs — Excel and Word — Microsoft has begun to use its homemade MAI models to respond to a certain percentage of user prompts, Bloomberg reported Tuesday. In the past, the company had advertised the fact that large parts of Office 365 are powered by models from both OpenAI and Anthropic.

While Microsoft still relies on those third-party models, it has also increasingly sought to stand up its own AI agents. Last month, at its annual Build conference, the company announced the launch...

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